Nationalisation off the table - Gigaba

Public Enterprises Minister Malusi Gigaba. File photo: Brandon van der Mescht

Public Enterprises Minister Malusi Gigaba. File photo: Brandon van der Mescht

Published Dec 20, 2012

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Bloemfontein - The ANC's national conference has resolved that wholesale nationalisation is “off the table”, ANC economic transformation policy commission head Malusi Gigaba said on Thursday.

“The national conference has refused to be drawn into the word 'nationalisation',” he told reporters in Bloemfontein.

“National conference was eager we provide final clarity on the issue. The issue of nationalisation as we have discussed it over the last few months is off the table.”

However Gigaba said there would be “strategic nationalisation” where necessary.

“As is the case with all other economies, there may come a moment where a particular sector might need to be nationalised for a specific reason.”

Commission head Enoch Godongwana said “scientific evidence” was needed to determine whether a sector needed to be nationalised.

“The state will increase state ownership in strategic sectors where deemed appropriate on the balance of evidence.”

He said delegates had resolved there needed to be effective use of state-owned enterprises. Transforming them would be a “key” factor in development.

“At the forefront of state intervention is the strength of the state mining company,” Godongwana said.

“The state must [also] capture an equitable share of mineral resources through the tax system. Conference resolved that there needed to be a review on strategic minerals.”

It resolved that a review of mining companies was needed to determine whether they complied with the mining charter.

With regards to rural development and land reform, Godongwana said there were no “substantial changes” to the resolutions made at the ANC's policy conference earlier this year.

“Key to rural development and land reform is the issue of restitution, redistribution and development.”

Godongwana said conference delegates favoured the “just and equitable” clause in the Constitution to deal with land redistribution over the willing-buyer, willing-seller model.

“This issue is enshrined in the Constitution,” he said.

The Constitution makes provision for the expropriation of land with compensation. - Sapa

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